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Marketing Plan

2006-2007

Restaurant & Bar Outlets Banqueting

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RICK’S
Key Competitors • • • • • • • • • • Dublin - Maurya Orient Express - Taj Palace 1911 – Imperial Whisky Bar – Grand Hyatt Lounge & Bar – Park Royal Golf Bar – Maurya Club Lounge - Oberoi Polo Lounge - Hyatt Island Bar- Shangrila 360 degrees – The Oberoi

New entrants year 05-06
EAU 100 seating,300 standing celebrity DJ,CAN BE BLOCKED FOR PVT PARTIES Lounge bar celeb DJ theme nights,can be blocked for pvt parties, VIP lounge for club memebers

OPERA LOUNGE 50 seating,75 standing

ORANGE ROOM LAID BACK WATERS ISLAND BAR

90 lounge seating ,1500 standing

90 seating 70 covers, 75 standing

DJ music, lounge bar with a trendy interior CD music, DJ music to start by mid Jan’06 DJ music, open air beer garden on Sundays, terrace spa by march’06 to open

AQUA

48 seating under 4000 sq ft

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CLIMAX

600 pax

Closed on tue and open at 8 pm on rest days with DJ music

New entrants year 06-07
SOHO 70 seating and net 200 pax seating and standing DJ music

SWOT-RICK’S
STRENGTH
• Highly strong Brand image • Prominent location • Niche clientele • Different music strategy as compared to other bars in Delhi • Ratio of repetitive guests to that of first timers is very high • Constant innovation in cocktail lists with an introduction of make your own martinis, with additions every quarter in the regular cocktail list. • Well trained, strong & motivated team • Only bar in town serving PanAsian Cuisine. • 80% guest recognition. • Consistency in maintaining quality of client profile. • Has always been top of the mind choice of corporate honchos

WEAKNESS
• No alteration, refurbishment or renovation done since the opening, hence seems monotonous to regulars with option of new bars with recent international designs • Constant supervision required for maintaining lower music volume as the sound travels to the rooms, due to acoustic constraints. • Limited time factor (1PM) as compared to stand alones and certain 5 starbars • Lack of seating. • Limited space for guests keen on dancing. • No live entertainment due to acoustic constraint. • Difficulty in staff movement when busy. • Small tables not suitable for dining. • Lack of proper exhausting & cooling system. • Uncomfortable temperature as the 3

bar gets filled up

OPPORTUNITES
• Lunch session to be tapped with • higher potential via embassy, corporate luncheon semi-formal meetings • • Improved and technologically advanced and recent sound system would result in higher guest satisfaction as the • previous sound system is worn out while other competitive bars and clubs have recent upgraded sound systems To capitalize on the popularity of the bar and its brand image. To make every guest a repeat guest. To increase Rick’s database. Conduct exciting promotions & events. To capitalize on resident guests as this is the only bar in the hotel. To experiment and continuously improve on the music selection. Train the staff on up selling skills and recent bartending skills in the market on a regular basis. Acknowledge, recognize and remember all regular guest preferences. To constantly innovate and increase our cocktail list. Improve on the quality and variety of food offered at Rick’s. • Maximum of revenue comes from the weekend crowd

THREATS
Top end bars in the same vicinity opening and have been opened in 05-06 Lower restriction on closing time in stand alone bars, luring guests to avail their services .Guests’ perception of Rick’s as an expensive bar.

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UPGRADATION PLAN 06-07
Upgradation points Action Plan

Increased imported liquor list in menu Enhanced ambience Increased weekday usage Enhanced ambience Enhanced ambience Enhanced ambience Increased Product options New target market Increased Product options Product upgradation Increased Product options Increased Product options

To add the exclusive brands of Rum, Tequila and Gin to the existing menu Introduction of 2 New candle concepts Introduction of Celebration packages -weekdays and high profile corporates eg,Shobhna Bhartia.Marketed by Equus Introduction of Mood lighting for enhanced experience for special nights Introduction of IPOD for larger music choice Upgradation of the Bose system Introduction of largest selection of steeped vodkas Martini Lunch on Sundays- Equus

Reworking the 101 martini menu Upgrading the complimentary snack selection with introduction of items apart from pretzels, varietal olives, nachos etc. served currently. Introduction of new High End Deluxe Vodkas like CIROC to the current selection

Introduction of vintage port selection Recipe cards compiled in a box in alphabetical order, to assist bartender for quick Process improvement reference ACTIVITY PLANNER

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City Scenario KEY ASSUMPTIONS FOR BUDGET 06-07
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There will be an increase of 5% in the Total covers, 4% in the Average check and resulting in an increase of 7% in the Net revenue. The revenue would be driven via increase in the total covers and average check with increased menu pricing The brand image will be enhanced and exclusive promotions. Non-resident cover increase would be targeted via special Celebrity DJ nights.

PRICING STRATEGY 06-07
TAJ PALACE ITEM BEER Draught Bottle Imported Corona Budweiser Heinekan Guinness Btls pints Indian(60ml)375 Gin Vodka Rum Whisky ORIENT Other EXP Outlets TAJ MAHAL RICKS OUTLET S SHERATON SANGRILA HYATT OBEROI DUBLIN (inlc. Tax) ISLAND BAR DJINNS CLUB OBEROI 360 BAR (incl. Tax)

WHISKEY BAR

1911

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Imported Gin Gordon's Beefeater B Saphire Tanqueray Vodka Absolute Stolichnaya Finlandia Smirnoff Black Flavoured Vodka Rum Mount Gay Cpt. Morgan Havana clb3yo Havana clb3yo Bacardi Spice Bacardi 8yo Whiskeys Regular JW Red Label Ballantines Famous Grouse J&B Rare Bells White label Premium JW Bl.Label Chivas Regal Dlx prem

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Blue Label Royal Salute American Tennessey Jack Daniel's J D Silver Select Bourbon Woodford Reserve Maker's Mark Jim Beam Canadian Canadian club Seagrams V.O Irish Jameson Bushmills Paddy Old Irish Single Malts Glenkinchie 10yo Taliskar 10yo Cardhu 12yo Glenlivet 12yo Oban14yo Laphroaig 10yo Macallan12yo Glenfiddich18yo Glenmorangie 18yo Glenfiddich10 yo Liqueur's Bailey's Grand Marnier Drambuie Kahlua

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Cointreau Tia Maria Benedictine Ameretto Galliano Cognac V.S Henessey Martell VSOP Remy Martin Henessey XO Remy Martin Henessey Aperitifs Campari Sherry

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MARKETTING STRATEGY Year 05-06 Trend In the year 05-06 the market growth in terms of the revenue was 9% while Rick’s showed a positive growth of 14%. Similarly while the market growth in year 04-05 in terms of covers was 5%, Rick’s showed a positive growth trend of 30% over the previous year. Opportunity Rick’s revenue generated was high and managed to maintain its No# 1 position in terms of highest revenue earner and most covers as per the YTD and the fair share in terms of Rick’s revenue was 20% and the covers was 16% for year 05-06, while in the year 04-05 the revenue fair share was 19% and cover was 13%. Threat This year apart from SOHO (at Ashok Hotel) there are no new entrants in the market but Top night clubs like Orange room (in the same vicinity), Climax and Elevate take a large share of club hoppers as they operate till early hours of morning as suiting the socialites, hence increasing the limited competition to an extensive stretch. Island bar and Three sixty remain as not so big threats this year. Pricing Policy In the year 04-05 Rick’s was considered the most expensive bar in the city, wherein the trends of revenues lured the competition to increase their prices that has brought Rick’s to an extremely competitive pricing structure since 05-06, as the menu pricing has already been increased in fast moving beverage items as per the competition. Leaving no further scope of increase in the prices as we wish to maintain the same prices for the beverage list but a 10% increase in the food menu, every quarter. Listing the high end spirit collection and choicest cocktails to flaunt and providing the necessary push for up-selling and increasing the average check by 5% and hence the revenue by 7%.

Cover Strategy 10

The covers are targeted to be increased by 4% over last year by following the activity planner with promotions and special evenings and further increasing the guest database.

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